A Summary of the September 2000 Board of Trustees Meeting

CSU Presents Initial Report on Cornerstones Accountability

David Spence, CSU executive vice chancellor and chief academic officer,
gave the initial report on the accountability process called for in Cornerstones,
the systemwide planning framework that defines the values, priorities
and expectations for CSU's future.

The process assesses nine performance areas to be reported on annually:
quality of baccalaureate program, student access, progress to degree,
graduation, areas of special state need, relations with the K-12 system,
remediation, facilities use, and university advancement.

The focus of the report is to show the performance of individual campuses
over time in the context of their different missions, goals, students,
and environments, rather than comparing campuses. The initial report establishes
baselines to measure future progress.

In addition to campus specific information on performance areas, some
key systemwide points in the report are:

Quality of baccalaureate degree program:
All campuses have begun to establish methods for measuring the quality
of their general education program, but much more progress has been made
in assessing student learning in academic majors. Most CSU campuses include
the requirement of outcomes assessment as part of the traditional program
review process. Campuses are on track to have fully functioning learning
assessment systems in place by 2003.

Access
Growth in applications for first-time freshmen admissions from 1996-97
to 1999-00 was almost twice the growth observed in upper-division community
college applications and post baccalaureate applications. Community college
transfers have increased by 8 percent from 1996-97 to 1999-00. From 1996
to 1998, the CSU increased its capacity for teacher preparation by 41
percent.

Areas of special state need (teaching)
The number of new multi-subject teaching credentials recommended by the
CSU increased by 31 percent from 1996/97 to 1998/99. The number of new
special education teaching credentials recommended by the CSU is almost
double the state's other public and private institutions combined.

Progress to degree
CSU's first year retention rate is well above the national average at
about 80 percent. The CSU is examining 4,000 student transcripts to evaluate
adjustments that could be made to limit unnecessary courses. CSU's traditional
full-time student graduation rate is on par with the nation's most selective
institutions at 65 percent, but only one-fifth of CSU students are considered
full-time (carrying 12-15 credits). Two-thirds of CSU students take 10-12
credits and 14 percent take less than 10.

Relations with K-12
The CSU spent more than $38.6 million in 1999/00 on outreach and student
academic preparation programs. The CSU provides academic preparation services
to more than 562,300 students in K-18. Nearly 6,300 CSU students served
as precollegiate tutors in 1999/00. 1,176 CSU faculty are directly involved
in outreach programs.

Remediation
Only 32 percent of the fall 1998 freshmen were prepared in both English
and math, but by the next fall, 94 percent of the returning students were
prepared in both English and math.

Facilities Use
54 percent of instruction in 1998/99 took place on Mondays through Thursdays
before 4 p.m., and only 26 percent took place after 4 p.m.on those days.
Only eight percent of instruction took place on Fridays.

University Advancement
Donations to the CSU totaled more than $640 million over the past three
years. Campuses now report nearly 2 million alumni of record with about
80 percent of those having valid addresses.

"I commend the Presidents and the Board. It took two years to develop
Cornerstones and it's a fabulous plan. We have information about ourselves
that other systems don't have," said CSU Chancellor Charles B. Reed. "This
is a benchmark. I will discuss this with the presidents, and report on
agreements for progress for next year. If we try and we get the budget,
we can show quantitative progress. The bottom line is quality programs
and graduation."

The accountability process was developed through a collaborative systemwide
effort that included input from the Alumni Council, California State Student
Association, and the systemwide Academic Senate. It was approved by the
Trustees in November 1999.

Budget Request to Include $245.4 in Partnership Funds

Richard West, CSU executive vice chancellor and chief financial officer,
presented a report on the CSU 2001/02 support budget request. It includes
$245.4 million in partnership agreement funds plus additional funds of
$121 million for items above the partnership agreement to provide funding
for important programs should sufficient general funds be available to
the state. Altogether, the CSU is asking for an increase of $366.4 million
to its $3.4 billion base budget.

The request, which is scheduled for adoption at the Trustees' October
26 meeting, is consistent with the partnership agreement reached with
Governor Davis this past spring.

The partnership funds request includes:
A four percent general fund increase - $96.6 million
A one percent funding increase for long-term non-salary needs such as
deferred maintenance, libraries and technology - $24.2 million An enrollment
increase, which is expected to be 3.5 percent (10,220 full-time equivalent
students) - $65 million
Support for year-round operations - $16 million

The request also includes a four percent increase for all employees
($81.5 million) within the partnership, and an additional 2 percent above
the partnership ($40.8 million). Should the CSU receive the total 6 percent,
it would reduce the CSU faculty salary lag to 2.9 percent, a decrease
from about 11 percent three years ago.

In addition to the general fund request, a total of $42.7 million is
the proposed lottery budget for 2001/02. That budget, which is also scheduled
for adoption at the Trustees' October 26 meeting, supports the forgivable
loan/doctoral incentive program, California pre-doctoral program, CSU
summer arts program and many campus-based instructional programs.

Trustees Approve Economic Framework for CSUDH Sports Complex

The Trustees approved the economic framework for a proposed public/private
partnership between Anschutz L.A. Soccer (ALAS) and CSU Dominguez Hills
to develop and operate a national training center and sports complex on
the campus.

The complex would encompass a national sports academy for world-renowned
athletes and coaches, and provide a home to Major League Soccer's Los
Angeles Galaxy and the new Women's United Soccer Association. It would
also host major tennis and track and field events. In addition, it would
be a training center for top amateur and professional athletes in soccer,
track and field, tennis and cycling; serve as a home for national and
Olympic teams; and host major sports camps and clinics for boys and girls.
ALAS estimates the cost of the complex at $100 million with no commitment
of campus funds for the project.

The Trustees also appointed a committee of Trustees to help reach a
final agreement between ALAS and CSU Dominquez Hills. The committee includes:
Bill Hauck, Tony Vitti, Murray Galinson, Fred Pierce and Denny Campbell.

Independent Report Shows No Bias in CSU Merit Pay

A report submitted to the Trustees indicates no systemwide gender discrimination
against women in the awarding of merit pay. The report included only preliminary
information, and was submitted by Resolution Economics, an independent organization
that is planning follow-up reports with more details. Merit pay is the main
issue in the contract negotiations between the CSU and the California Faculty
Association.

The three main results of the Resolution Economics report indicated
the following:

Women received about 9,400 merit pay awards in 1998 and 1999 combined,
a statistically significantly higher total than what would be expected
given their proportion of the CSU faculty who asked to be considered for
merit increases.

Women in 1998 and 1999 combined averaged merit pay increases of 2.67
percent compared to 2.44 percent for men, but the difference is not statistically
significant.

Men averaged a slightly higher average increase in total dollars (about
$70 more per year in 1998 and 1999) -- not a statistically significant
difference.

For more information on merit pay at the CSU go to <calstate.edu/tier2/News.shtml>.

The Trustees approved the formation of a joint powers authority with the
City of Stockton to oversee the development, operation, maintenance and
financing of the portion of the CSU Stanislaus Stockton Center not needed
by the university for educational purposes.

The Stockton Center Site Authority will be composed of three members
of the Stockton City Council appointed by the city, three members appointed
by the CSU chancellor, and one member jointly appointed by the Stockton
mayor and the chancellor.

"It's been a long time, but this is a reasonable resolution of an issue
that needed to be resolved," said Trustee Bill Hauck.

The formation of the authority will allow for the continuation of the
planning, development and financial planning for the site as contemplated
in its feasibility study. Five members of the panel will be needed to
approve long-term debt. The first meeting of the authority is expected
to take place within the next six weeks.

Trustees Vote to Oppose Proposition 38

The Trustees voted to oppose Proposition 38, which would require the state
to offer an annual voucher to every school-age child in California.

"Traditionally, the CSU hasn't taken positions on propositions, but
in this case, we're in total partnership with the K-12. We need to give
the new K-12 programs and the Governor's programs a chance. We can achieve
when the results of these programs take effect," said Trustee Bill Hauck.

"There's no doubt we must stand behind the public schools," said Trustee
Ralph Pesquiera.

The CSU Academic Senate and the California State Student Association
also oppose Prop. 38.

Trustees Named to Presidential Search Committees

Two CSU presidents recently announced they are resigning, and Trustee Chair
Larry Gould named the Trustees who will serve on the presidential search
committees. The Trustees on the committee to select the successor for California
Maritime Academy President Jerry Aspland will be Ralph Pesqueira, chair,
Roberta Achtenberg, and Stanley Wang. Trustees on the committee to select
the successor for CSU Channel Islands President Handel Evans will be Denny
Campbell, chair, Debra Farar, and Bob Foster.

Chancellor Reed and Trustee Chair Gould serve as ex officio members
of both committees, and shortly faculty, student, staff and other constituencies
from both campuses will be selected for the advisory committees to the
search committees.

IN OTHER ACTION

The Trustees Approved:

A fast track request from CSU Long Beach to establish a B.A. degree
in Chinese studies.

Authorizing the issuance and sale of the San Diego State University
Parking System Revenue bonds, Series B, in an amount not exceed $15.4
million for the construction of a multi-level parking structure to completed
by August 2001.

The issuance of the California State Housing System Revenue Bonds
in an amount not to exceed $13.8 million to finance the construction
of a student apartment complex.

Amending the 2000/01 capital outlay program, nonstate funded, to include
the regional and continuing education/foundation projects complex at
CSU Sacramento at a cost of $12.8 million.

Amending the 2000/01 capital outlay program, state funded, to include
an energy infrastructure upgrade at San Jose State at a cost of $12.9
million.

Schematic plans for the following projects: the regional and continuing
education building at CSU Sacramento; the engineering and architecture
renovation/replacement, Phase I, at Cal Poly San Luis Obispo.

A revised schedule of the 2000/01 Trustees meetings to move the March
20-21 meeting to CSU Long Beach.

Adopting Legislative Report Number 12.

The Trustees Heard:

An initiative on the benefits of tax-exempt commercial paper program
that could significantly reduce financing costs.

The California Environmental Quality Act Annual Report.

The CSU Seismic Review Board Annual Report.

A report on the previous five-years capital funding program 1996/97
through 2000/01.

A report on 2000/01 university advancement campus plans.

An update on CSU university advancement activities including: CSU
winners of Council for the Advancement and Support of Education (CASE)
national awards; the CSU Advancement Academy Conference; and CSU 2001
Legislative Day.